The Nordic Investment Bank (NIB) has signed a 10-year loan agreement with Danish grid operator Energinet to co-finance the construction of the 1400MW Viking Line interconnector between Denmark and the UK.
NIB is providing a €134.4m loan for the Viking Line, which will enable the more effective use of renewable energy and improve the security of electricity supplies.
The plan is to install two cables each with a projected capacity of 700MW between 2020 and 2023.
Full commissioning of the interconnector is expected in December 2023.
“The main reason for strengthening this section of the northern Europe power grid is to accommodate for optimal power flows between the UK, Denmark, the Netherlands and Germany,” said Henrik Normann, NIB president and CEO.
“Energinet works for a green transformation of the energy systems, so that citizens and companies can use renewable energy for everything, with a high security of supply and at a price that can be paid.
“In this connection, Viking Link is an important component which ensures efficient utilisation of renewable energy and generally increases security of supply in Denmark.
The Viking Line is a 760km 1.4GW high voltage direct current electricity interconnector between the substations of Revsing in southern Jutland, Denmark, and Bicker Fen in Lincolnshire, Great Britain.